Manufacturer of sustainable clothing raw materials receives $100 million investment

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Recover, a materials science company that produces sustainable recycled cotton fibers and cotton fiber blends, received $100 million in minority equity. The funding comes from the sustainable investing business within Goldman Sachs Asset Management, alongside majority shareholder STORY3 Capital Partners.

The company plans to use the funds to accelerate its global expansion and production capacity, with the goal of enabling faster adoption of sustainability initiatives by apparel companies. Recover serves global retailers, brands and suppliers including Primark, Inditex, CALIFORNIA, Turn and lands end. The company has opened new manufacturing centers in Pakistan and Bangladesh, with additional centers in Bangladesh and Vietnam expected to open in the short term.

Recover’s proprietary recycled cotton fiber reduces the carbon and water intensity of the apparel supply chain, which has been identified as a major contributor to climate change and other negative environmental impacts. The new investment will help Recover increase production to more than 350,000 metric tons of recycled cotton fiber per year by 2026, saving up to 5 trillion liters of water per year — the equivalent of drinking water consumed by more than 4.5 billion people every year. Additionally, the increased capacity will significantly reduce carbon emissions, energy and land use compared to conventional cotton lint.

“Goldman Sachs is committed to partnering with innovative companies that contribute to sustainability,” Letitia Webster, head of sustainability for private investment at Goldman Sachs Asset Management, said in a statement. “Recover is a leading disruptor in the apparel and textile space with must-have sustainable solutions grounded in materials science.” As part of the transaction, Webster will join Recover’s board of directors.

“Recover is helping to create a sustainable future by solving a colossal environmental problem and we are thrilled to partner with Goldman Sachs to accelerate our growth,” said Alfredo Ferre, fourth generation family steward and CEO of Recover in a statement. Ben Malka, Operating Partner at STORY3 Capital Partners and Executive Chairman of Recover, said, “Recover has perfected the art and science of large-scale production of sustainable recycled cotton fibers over more than 70 years through several generations of the Ferre family in Spain. Today, Recover offers a solution based on proprietary intellectual property that provides recycled cotton fiber at competitive prices and maximum performance for rotor and ring applications.

Individual brands like Rothy’s has long been committed to producing clothing in a sustainable way, in its case by recycling plastic water bottles. In addition, the new Fashion Climate Fund, with the participation of H&M and lululemonis designed to create a collaborative funding model between philanthropy and business that could unlock an estimated amount $2 billion in mixed capital to support sustainable development initiatives.

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